and that's because the education system has developed in a way where people are getting educated for a certain type of job which is a public sector job, not for a private sector job. the incentives are in the wrong place. high fuel subsidies that have sort of characterized the region's type of social safety net is also a big problem. it's not just a big problem because it's costly to defisk, it's also a big problem because they're regressive. they don't even target the population you want to target because rich people have bigger houses, more cars, more appliances, etc. and they tend to go to industry. but by going to industry, there's a double burden there because you're actually subsidizing one input, which is fuel, while taxing labor, yet your main opportunity is a big labor force. you want to take advantage of the human capital, yet policy is pushing industry to take advantage of fuel instead. there's also the poor business climate which has been recognized in a number of reports. we have one that came out before the arab spring privilege to competition where the private sector's